India’s trade deficit surged to a record USD 41.68 billion in October 2025, up from USD 32.15 billion in September. The widening gap comes as exports fell sharply while imports rose, especially for precious metals like gold and silver.
Exports in October dropped 11.8% to USD 34.38 billion. Shipments to key markets such as the United States fell to USD 6.31 billion from USD 6.91 billion a year ago, affected partly by U.S. tariffs on Indian textiles, gems, and jewellery. Weak global demand also contributed to the decline in exports.
Imports, meanwhile, increased 16.6% to USD 76.06 billion. Gold imports alone jumped to USD 14.72 billion, nearly three times higher than in October 2024, driven by strong domestic demand and the festive season. Silver imports also rose sharply, by over 500%, reaching around USD 2.71 billion. Other imports, including crude oil, electronics, and machinery, also added to the higher import bill.
The combination of falling exports and rising imports has put pressure on India’s balance of payments. The growing trade deficit can affect the stability of the rupee and foreign-exchange reserves. Policymakers may need to take steps to manage non-essential imports while supporting export growth.
Despite the high merchandise trade deficit, India continues to see a surplus in services trade, which helps cushion the overall impact. Experts suggest closely monitoring trade data in November and December, as the festive season and year-end shipments could further influence numbers.
The October figures highlight challenges for India’s external sector and underscore the need for careful policy measures. Controlling non-productive imports, providing support to exporters, and promoting competitive shipments abroad will be key to managing the trade gap and maintaining economic stability.
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